The Dragon's Peak is a short, fairly linear dungeon crawl. The really annoying part of this dungeon is actually the enemies… not the enemies themselves, necessarily, but their ability to petrify anyone in your party. Petrifaction is a real pain in the ass, and can only be cured by way of a Gold Needle. Since you can't attack when petrified, you're gonna wanna be able to heal it. Therefore, you're gonna wanna stock up before you head out of here. Canaan has plenty to purchase.

Follow the initial linear path as it winds around. When it splits both northward and southward, take the southern route initially to grab a Phoenix Down. Then, go north all the way to another treasure chest - that one contains an Aero Spell. Then, simply head west, then go north (collecting the Gold Needle en route) and you'll run headlong into Bahamut.

Bahamut is a pseudo-boss of sorts, because you can't defeat him and you're forced to run from the battle. He'll likely kill one of your characters outright (no worries - that character will be revived shortly). Hold the R and L buttons to run. When you do, you'll want to talk to Desch, who is in the Bahamut's nest. And like that, the five of you will jump from the peak and onto the world map on the other side.

The Mini Spell that you acquire automatically from Desch is a necessity here. Since you're going to be traveling to Tozus, a city of small people, you'll need to cast Mini on all four of your characters. Thereafter (and only then) will you have access to the village. In case you're curious, the village is in the southwest corner of the large forest to the south. Keep in mind that you can heal yourself at the spring in the northern forest (simply walk on in). Unless you're at an unusually high level at this point, you'll actually have to use this spring to replenish your Mini magic in order to use it on everyone.

Once in Tozus, you can feel free to explore. Talk to everyone you encounter. Head to the northwest part of the village and enter the house there. Talk to the bedridden doctor and use an Antidote on him to cure him. When you do, another new plethora of free items will become available to you via a newly-revealed secret passageway. Within, you will find Mythril Bracers, a Fire Staff, a Fira Spell, a Cura Spell, and two Phoenix Downs. Otherwise, once you're satisfied with your experience here, you can use the Tozus Tunnel, which is extremely linear with absolutely no items to find, to get to the world map on the other side. The Leprechauns and Darkfaces you fight within shouldn't give you too much of a problem. Just keep in mind that, as a party of Minis (which you will stay as for quite some time), you'll want everyone in the back row, and everyone as a magic caster of some sort.

Once on the world map, head northwest to find a cave entrance. This is our next destination.